Car insurance is a legal requirement for drivers in the state of Tennessee. Understanding the standard insurance premiums in the area could help you evaluate quotes and choose the most budget-friendly option for your level of coverage. Read on to learn more about the average cost of car insurance in Tennessee for a variety of groups.
What Is the Average Cost of Car Insurance in Tennessee?
Your location has a significant impact on insurance rates, and understanding how insurance companies determine prices in Tennessee could help you make wise choices when shopping for car insurance. Insurers typically use data about the frequency of accidents, the likelihood of inclement weather, and the regularity of vehicle-related crimes like vandalism and theft to determine the right price for an area. On average, Tennessee drivers pay around $1,315 for a year of coverage, though rates depend on the type of coverage drivers select. This is lower than the national average.
Every individual typically pays a slightly different rate for their insurance based on their driving history and personal information. Details such as your age, marital status, credit history, and driving record could drive prices up or down. If you’re looking for opportunities to lower your premiums, check with your provider to learn if you qualify for any discounts.
You might be saving money just by living in Tennessee. Tennessee has relatively low insurance rates when compared to other states. Rates in Tennessee beat nearby states, such as Georgia and Kentucky, and the state offers the 15th cheapest car insurance out of all 50 states. However, it’s worth noting that different cities within the state might warrant different insurance premiums. For example, insurance prices in Nashville and Memphis are typically higher than the state average, so expect to pay more to drive in a city’s busy urban environment.
Average Cost of Car Insurance in Tennessee for Minimum Coverage
When planning for your monthly premium, the type of insurance plan you choose is one of the biggest determining factors. In Tennessee, you’re legally required to purchase car insurance if you plan to drive a car. If you want a basic policy that ensures you meet your legal obligation without paying for any additional coverage, a minimum coverage or minimum liability policy might be suitable for you. In Tennessee, at minimum, insurance plans must cover:
- $25,000 per bodily injury or fatality
- $50,000 total for all bodily injuries or fatalities
- $30,000 for property damage
Minimum coverage insurance plans are typically significantly less expensive than the average plan, because they don’t cover every circumstance. The average minimum coverage policyholder in Tennessee pays about $498 to $514 per year to insure their vehicles. This is less than half the price of the average insurance policy in Tennessee.
Average Cost of Car Insurance in Tennessee for Full Coverage
Alternately, full-coverage insurance includes optional coverage for unexpected events, such as colliding with an uninsured driver or getting the catalytic convertor stolen from your car. Each provider might have a slightly different definition of full-coverage insurance, so if you want to maximize your coverage, research your options to find a plan that suits your needs. In addition to state minimums, full coverage policies might include:
- Collision insurance: This coverage pays for repairs to your vehicle caused by a car accident, regardless of who was at fault.
- Comprehensive insurance: This coverage helps you pay for damages from an incident other than a collision, including vandalism or theft.
- Uninsured or underinsured motorist insurance: This coverage assists you if you’re hit by a driver who doesn’t have insurance or whose insurance doesn’t cover your damages.
Tennessee drivers pay an annual average of $1,534 for full coverage insurance in Tennessee, which equates to about $128 per month. This is less expensive than many other states. Remember, your personal rates depend on a variety of factors, including whether you’ve gotten into accidents in the past and if you were responsible for those incidents.
Average Cost of Car Insurance in Tennessee for Imperfect Driving Records
People who have infractions such as speeding tickets or driving under the influence (DUI) typically pay significantly higher insurance rates than people with clean driving records. While each insurer has its own policy for factoring in previous incidents, an incident typically affects your rates less the further in the past it is, assuming you don’t have another. Here are the average annual premiums in Tennessee for common driving infractions, according to The Zebra:
- DUI: $1,903
- Driving with an open container: $1,660
- Speeding: $1,557 to $1,578
- At-fault crash: $1,764 to $1,787
- Reckless driving: $1,844
Average Cost of Car Insurance in Tennessee for Teenage Drivers
Teenagers are notably the most expensive age group to insure because they typically have little experience behind the wheel and are more likely to end up in collisions than other groups. Insurance companies consider them to be risky investments for these reasons and charge high premiums to account for this fact. Average rates for teenage drivers in Tennessee range from $1,933 to $4,515 per year. Because insurance for teen drivers can be so pricey, it could be beneficial to shop around to find the best deal for young drivers.
Rates go up even more for teenage drivers if they receive a ticket. Many providers charge Tennessee teenagers more than $1,000 per year for a minimum coverage policy, which is significantly higher than average. However, not all insurers increase rates for young drivers after a single ticket. Again, ask for personalized quotes from each provider you’re considering so you can learn who’s offering the most competitive price for your situation.
If you’re a driver in Tennessee, it’s vital to insure yourself responsibly when you’re on the road. Having the proper level of coverage could help you avoid financial ramifications and protect those around you. Researching your options to find the best coverage for the lowest price can make it that much easier.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
